USA Today has an article where they cite a report by non-partisan, non-profit research group (Rand Corp) says that companies employing fewer than 100 people are expected to pay almost 6% less in premiums in 2016 than without the ACA in place. Christine Eibner, a senior economist at Rand Corp., said the following, “The rate-shock concerns were overblown. It’s likely the effect (negative effects of ObamaCare) will be small.”
Once the insurance marketplace begins to see less industry related inflation, due to the fact that there’s limits on the amount of profit that one company can make on a policy, larger companies, such as UPS who manage their own healthcare costs will actually see a sharp decline in costs overtime.
UPS noted in its memo that it is estimating only a 4% increase in costs for 2014, which is in line with estimates from the Kaiser Family Foundation. That figure, which political pundits on both sides of ObamaCare along with health insurance industry executives and analysts all cite in an effort to promote their opinion.
In our coverage of UPS and their memo sent to the 15,000 effected by their decision to no longer support non-union worker spouses who should be able to get coverage from their own employer, we pointed out that the actual increased cost to continue coverage would have amounted to less than $15 a month per person, or $160 to be exact.
Many health insurance industry analysts have noted that the move made by UPS is actually reflective of a trend that has been ongoing for many years. The new laws put into effect by the ACA simply give large corporations the ability to place the responsibility of providing insurance for spouses on someone else while skillfully being able to put the blame on ObamaCare which is a divisive subject and a lightning rod for controversy.
Kudos (sort of) to USA Today for running this story today, but we have to point out that when the original UPS story broke they chose to not highlight any of the real economic data. Instead they decided to follow suit with 98% of the rest of the media outlets by focusing on the attention getting headlines of “Because Of ObamaCare UPS Cuts Insurance For 15,000 Spouses”.
Although we will say that their actual headline of “UPS won’t insure spouses of many employees” wasn’t nearly as manipulative as some others.